Problem

If the interest rate is 7%, what is the value of the following three investments?a. An inv...

If the interest rate is 7%, what is the value of the following three investments?

a. An investment that offers you $100 a year in perpetuity with the payment at the end of each year.


b. A similar investment with the payment at the beginning of each year.


c. A similar investment with the payment spread evenly over each year.

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Solutions For Problems in Chapter 2